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Is Israel the ‘Start-Up Nation’ Because of Its Security Situation?
The State of Israel is unique — it enjoys significant economic growth while maintaining one of the highest defense burdens of any country in the world. The reason for the high defense expenditure is that Israel has been engaged in a fight for its very existence from the day of its formation. Concurrently with the ongoing threat, Israel’s economy has grown rapidly, averaging around 4% annual growth over the last two decades.
Israel’s growth strategy is directly tied to investments in research, development, and technology. Science and technology have always been perceived by Israel as key factors in the power equation between itself and its surrounding adversaries. Israel’s expenditure on research and development as a proportion of GDP is one of the highest in the world at approximately 5%. The country’s emphasis on science and technology is evident in the high density of scientists and engineers within its population, which easily competes with that of any developed European country.
In its early years, Israel attempted to address its pressing security challenges by developing a national security strategy that emphasized qualitative parameters to neutralize the quantitative gaps vis-à-vis the surrounding enemy states. Soon after the establishment of the state, David Ben-Gurion — Israel’s first prime minister and minister of defense — articulated that due to Israel’s numerical inferiority, it must strive for qualitative superiority. Israel identified science and technology as critical for the accomplishment of this strategy.
Ben-Gurion further asserted that scientific research and technological development were essential not only for security needs, but also for the development of Israel in terms of agriculture, industry, and education. His plan was to enlist the best scientific minds of the Jewish people and to motivate young scientific talents to dedicate their lives to scientific research. They were to be provided with advanced equipment and well-equipped laboratories in fields such as physics and biology, with the expectation that they would align their research efforts towards the security and development of the country.
Given that “big science” involves long development cycles, high uncertainty, substantial risk, and a considerable chance of failure, engaging in extensive private-commercial science and technology projects without state intervention was exceptionally challenging, if not impossible, in the initial decades of Israel’s existence. The necessity for government funding stands out as a primary obstacle for smaller nations seeking to cultivate such capabilities. However, despite the challenges it faced and its status as a small state, Israel managed to overcome these barriers, successfully constructing and advancing a significant technological infrastructure. Israel attributes much of this success to making technological superiority a cornerstone of its national security strategy, which led in turn to the establishment of a well-developed and technologically advanced defense sector.
The end of the 20th century saw a dramatic change in the world’s technological landscape. State-owned technological innovation led primarily by the defense sector shifted towards innovation led by the entrepreneurs and investors of the private sector, establishing what we know today as the start-up age. Today, annual investment in commercial startups worldwide is significantly higher than investment in defense R&D. The private commercial sector dominates technological innovation and the defense sector often “feeds” on these innovations for its own applications, rather than the other way around.
Following this shift in technological dominance and leveraging its highly developed science and technology infrastructure, Israel has managed to position itself as a global source of technological innovation and business entrepreneurship, and is often referred to accordingly as the “Start-Up Nation.” Israel has many hi-tech companies listed on the NASDAQ, the second-largest stock exchange in the world after the New York Stock Exchange. Israel’s presence on the NASDAQ is second only to that of the United States and China. As of the end of 2022, there were over 130 Israeli companies listed on the NASDAQ, which is comparable to those of the British, French, and German companies on the exchange combined.
In the last decade, Israel’s investment in research and development has been the highest in the world relative to GDP by a significant margin. Additionally, Israel’s venture capital fundraising rate is among the highest globally on a per capita basis, and the success rate of its unicorn companies is particularly high. Between 1999 and 2014, approximately 10,000 start-up companies were established in Israel, with 2.6% achieving an annual profit of at least $100 million. In the Global Competitiveness Report for 2018-19, which ranked 141 countries, Israel was first in entrepreneurial culture and second in availability of venture capital. In 2021, investments in Israeli startups reached an unprecedented peak of $26 billion.
Given this context, it might seem reasonable to argue that aligning Israel’s highly developed technological ecosystem with its unique security context may have been relevant in its early decades, but has grown less so with time. This might appear on the surface to be true, as Israel’s economy seems to have extricated itself over the last few decades from the clutch of the defense sector and transformed the country into the “Start-Up Nation” it is today.
But the argument is inaccurate, as the connection between the Israeli hi-tech industry and the Israeli defense sector remains robust. To appreciate why, we need to delve into the Israeli technological ecosystem.
The ties to the defense system, particularly to the IDF, play a pivotal role for the Israeli hi-tech industry. In Israel, most citizens undergo mandatory military service, and after their discharge, many continue on active reserve duty. There is thus a continual interaction between the Israeli civilian and military domains.
This ongoing connection significantly empowers entrepreneurs serving in the IDF’s technological units to introduce novel technologies and devise solutions that can benefit the defense system. These entrepreneurs possess an in-depth personal understanding of that system and can identify its needs, weaknesses, and vulnerabilities. They utilize the training and extensive knowledge they acquired during their military service in the development process to great effect.
In the Israeli hi-tech sector, many of the start-up companies specializing in intelligence and cybersecurity are predominantly staffed by graduates of military technological units like Units 8200 and 81. These start-ups are involved in advancing defense-related technological projects, delivering training to defense entities, and providing prompt responses to the system’s operational needs. In many cases, the products offered by these companies are not generic but are meticulously tailored to meet specific operational requirements. Many projects undertaken by these companies are at the forefront of technological advancement.
To comprehend just how profound is the influence of this phenomenon on the Israeli hi-tech industry, we should examine the two units mentioned above, 8200 and 81. In the late 1990s, the IDF recognized the pivotal role of the cyber domain and took on the challenge of identifying and training suitable human resources. The IDF accordingly instituted unique advanced selection processes to recruit high-quality personnel. The innovative training program and courses transformed these young recruits into true experts in their fields.
Between 2003 and 2010, 100 or so officers and soldiers who completed their service in Unit 81 established around 50 start-up companies, collectively raising over $4 billion. Many of these companies continue to yield substantial revenues, and some have achieved successful exits. Unit 8200 was a major contributor to the emergence of many cybersecurity companies, including the legendary Check Point; Adallom, acquired by Microsoft for $320 million; and Armis, acquired by Accenture for $1.1 billion.
More than 1,000 start-ups have been founded by 8200 alumni. Its graduates are involved not only in cybersecurity start-ups but in many other fields as well, ranging from Waze to Wix to SolarEdge. These examples represent only a small fraction of the broader trend. It is no exaggeration to assert that graduates of these units have significantly shaped the Israeli hi-tech sector over the past decade. These units are a true powerhouse propelling the Israeli hi-tech sector, with a significant portion of the technology they develop flowing back to defense applications.
When analyzing the unique relationship between the IDF and the private commercial hi-tech sector in Israel, we can see that Israel’s unique security situation has created a mechanism through which both parties are so interwoven as to make it difficult at times to tell them apart. It is in Israel’s best interest to continue to nurture this unique relationship, which is beneficial for Israel’s prosperity as well as its security.
Nir Reuven is a researcher at the BESA Center, an engineer, and a former officer in the Merkava development program (the main Israeli battle tank). He has held management positions in the Israeli hi-tech industry and is an expert on technology. Currently he is co-manager of the Sapir College Innovation and Entrepreneurship Center. He is working on his Ph.D. and lectures at Bar-Ilan University. A version of this article was originally published by The BESA Center.
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Antisemitic Incidents at Argentina Local Soccer Match Spark Official Investigations, Condemnations

Fans of Argentinian soccer club All Boys marched through the streets before their match against Atlanta soccer club, carrying a coffin draped with an Israeli flag alongside Iranian and Palestinian flags. Photo: Screenshot
Argentinian authorities and soccer officials have launched investigations following antisemitic incidents by Club Atlético All Boys fans during Sunday’s local match against Atlanta.
Atlanta, a soccer team based in the Villa Crespo neighborhood of Buenos Aires, has deep historical ties to Argentina’s Jewish community, which has long been a significant presence in the area.
This latest antisemitic incident took place outside the stadium before the game had even started.
All Boys fans were seen waving Palestinian and Iranian flags, carrying a coffin draped with an Israeli flag, and handing out flyers bearing messages like “Free Palestine” and “Israel and Atlanta are the same crap.”
Before a football match today against the Argentine sports club Atlanta, which is closely associated with the Jewish community, fans of the opposing team, All Boys, waved Islamic Republic and Palestinian flags while parading a coffin draped in an Israeli flag through the streets.… pic.twitter.com/IQs4v6eoFz
— Hen Mazzig (@HenMazzig) June 29, 2025
Then, during the match — which ended in a 0-0 draw — a drone carrying a Palestinian flag flew over the stadium, while some fans reportedly chanted anti-Israel slogans.
Local police confirmed they have issued citations to individuals accused of inciting public disorder and related offenses.
On Monday, the Argentine Football Association (AFA) condemned the incidents as “abhorrent” and confirmed the organization has opened a formal inquiry into the events.
“This is not folklore. This is discrimination,” the statement reads.
Argentina’s Security Minister Patricia Bullrich also announced that a criminal complaint has been filed, citing “acts of violence, expressions of racial and religious hatred, and public intimidation.”
In a post on X, the Delegation of Argentine Israelite Associations (DAIA), the country’s Jewish umbrella organization, condemned the incidents and called on both local authorities and the soccer officials to “take firm action against these acts of hatred.”
“We urge the authorities to take all necessary actions and apply the full force of the law,” the statement reads. “Violence and discrimination must have no place in our society.”
Repudiamos enérgicamente las expresiones antisemitas ocurridas hoy en las inmediaciones del estadio Malvinas Argentinas.
Exigimos a las autoridades correspondientes, a la AFA y al Club All Boys que actúen con firmeza ante estos hechos de odio.
La violencia y la discriminación no… pic.twitter.com/3AmY7IQscY— DAIA (@DAIAArgentina) June 29, 2025
Since the Hamas-led invasion of and massacre across southern Israel on Oct. 7, 2023, Argentina has experienced a surge in antisemitic incidents and anti-Jewish hate crimes.
According to a recent report by DAIA, Argentina experienced a 15 percent increase in antisemitic activity last year, with 687 anti-Jewish hate crimes recorded — up from 598 incidents in 2023 — marking a significant rise nationwide.
The study indicates that 66 percent of the antisemitic incidents originated in the digital realm, with a significant rise in Nazi symbols and conspiracy theories, but there was also a 34 percent increase in reported physical assaults, with such hate crimes rising in schools and neighborhoods.
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Iranian nuclear program degraded by up to two years, Pentagon says

A satellite image of Iran’s Fordow nuclear facility. Photo: File.
The Pentagon said on Wednesday that US strikes 10 days ago had degraded Iran’s nuclear program by up to two years, suggesting the U.S. military operation likely achieved its goals despite a far more cautious initial assessment that leaked to the public.
Sean Parnell, a Pentagon spokesman, offered the figure at a briefing to reporters, adding that the official estimate was “probably closer to two years.” Parnell did not provide evidence to back up his assessment.
“We have degraded their program by one to two years, at least intel assessments inside the Department [of Defense] assess that,” Parnell told a news briefing.
U.S. military bombers carried out strikes against three Iranian nuclear facilities on June 22 using more than a dozen 30,000-pound bunker-buster bombs and more than two dozen Tomahawk land attack cruise missiles.
The evolving U.S. intelligence about the impact of the strikes is being closely watched, after President Donald Trump said almost immediately after they took place that Iran’s program had been obliterated, language echoed by Parnell at Wednesday’s briefing.
Such conclusions often take the U.S. intelligence community weeks or more to determine.
“All of the intelligence that we’ve seen [has] led us to believe that Iran’s — those facilities especially, have been completely obliterated,” Parnell said.
Over the weekend, the head of the UN nuclear watchdog, Rafael Grossi, said that Iran could be producing enriched uranium in a few months, raising doubts about how effective US strikes to destroy Tehran’s nuclear program have been.
Several experts have also cautioned that Iran likely moved a stockpile of near weapons-grade highly enriched uranium out of the deeply buried Fordow site before the strikes and could be hiding it.
But US Defense Secretary Pete Hegseth said last week he was unaware of intelligence suggesting Iran had moved its highly enriched uranium to shield it from US strikes.
A preliminary assessment last week from the Defense Intelligence Agency suggested that the strikes may have only set back Iran’s nuclear program by months. But Trump administration officials said that assessment was low confidence and had been overtaken by intelligence showing Iran’s nuclear program was severely damaged.
According to Iranian Foreign Minister Abbas Araqchi, the strikes on the Fordow nuclear site caused severe damage.
“No one exactly knows what has transpired in Fordow. That being said, what we know so far is that the facilities have been seriously and heavily damaged,” Araqchi said in the interview broadcast by CBS News on Tuesday.
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Switzerland Moves to Close Gaza Humanitarian Foundation’s Geneva Office Over Legal Irregularities

Palestinians carry aid supplies received from the US-backed Gaza Humanitarian Foundation in the central Gaza Strip, May 29, 2025. Photo: REUTERS/Ramadan Abed/File Photo
Switzerland has moved to shut down the Geneva office of the Gaza Humanitarian Foundation (GHF), a US- and Israeli-backed aid group, citing legal irregularities in its establishment.
The GHF began distributing food packages in Gaza in late May, implementing a new aid delivery model aimed at preventing the diversion of supplies by Hamas, as Israel continues its defensive military campaign against the Palestinian terrorist group.
The initiative has drawn criticism from the UN and international organizations, some of which have claimed that Jerusalem is causing starvation in the war-torn enclave.
Israel has vehemently denied such accusations, noting that, until its recently imposed blockade, it had provided significant humanitarian aid in the enclave throughout the war.
Israeli officials have also said much of the aid that flows into Gaza is stolen by Hamas, which uses it for terrorist operations and sells the rest at high prices to Gazan civilians.
With a subsidiary registered in Geneva, the GHF — headquartered in Delaware — reports having delivered over 56 million meals to Palestinians in just one month.
According to a regulatory announcement published Wednesday in the Swiss Official Gazette of Commerce, the Federal Supervisory Authority for Foundations (ESA) may order the dissolution of the GHF if no creditors come forward within the legal 30-day period.
The Trump administration did not immediately respond to requests for comment on the Swiss decision to shut down its Geneva office.
“The GHF confirmed to the ESA that it had never carried out activities in Switzerland … and that it intends to dissolve the Geneva-registered branch,” the ESA said in a statement.
Last week, Geneva authorities gave the GHF a 30-day deadline to address legal shortcomings or risk facing enforcement measures.
Under local laws and regulations, the foundation failed to meet several requirements: it did not appoint a board member authorized to sign documents domiciled in Switzerland, did not have the minimum three board members, lacked a Swiss bank account and valid address, and operated without an auditing body.
The GHF operates independently from UN-backed mechanisms, which Hamas has sought to reinstate, arguing that these vehicles are more neutral.
Israeli and American officials have rejected those calls, saying Hamas previously exploited UN-run systems to siphon aid for its war effort.
The UN has denied those allegations while expressing concerns that the GHF’s approach forces civilians to risk their safety by traveling long distances across active conflict zones to reach food distribution points.
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